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Grindwell Norton Ltd Stock Analysis

Mid Cap
Evaluated by 1379 users | BSE: 506076 | NSE: GRINDWELL |
Abrasives

Grindwell Norton (GNO), a company listed on the Bombay and National Stock Exchanges, pioneered the manufacture of grinding wheels in India in 1941. In 1990, Saint-Gobain acquired Norton Company, USA, worldwide and thereby became a shareholder in GNO. In 1996,...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Grindwell Norton Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 22.59%23.9%19.87%15.19%16.78%14.18%13.97%15.83%15.64%15.82%
Value Creation Index 0.810.910.590.220.340.130.120.270.12NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7979079459421,1101,1261,2361,4051,5671,552
Y-o-Y Gr. Rt.-13.8%4.3%-0.4%17.9%1.4%9.8%13.7%11.5%-0.9%
Adjusted EPS (Rs.) 7.759.378.827.48.918.8210.3713.3314.5215.9
Y-o-Y Gr. Rt.-20.9%-5.9%-16.1%20.4%-1%17.6%28.5%8.9%9.5%
Book Value per Share (Rs.) 36.1441.7246.7450.3855.4368.3279.6688.1297.37105.34
Adjusted Net Profit 85.810497.781.998.697.6115148161176
Net Op. Cash Flow (Rs. Cr.) 78.211110196.198.113116112481.9307
Debt to Cash Flow from Ops 00000.020.020.02000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Grindwell Norton Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.7%6.9%7.9%-0.9%
Adjusted EPS 8.3%12.3%15.3%9.5%
Book Value per Share 12.613.79.88.2
Share Price 23.9% 22.6% 20.8% 81%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 22.5323.8419.7915.1416.7414.1613.9215.7815.5415.55
Operating Profit Margin (%) 16.4616.8715.1813.9814.8315.0114.6316.8916.5616.24
Net Profit Margin (%) 10.7711.4410.338.78.888.679.2910.510.2611.34
Debt to Equity 0000000000
Working Capital Days 144107111113112129121122133141
Cash Conversion Cycle 52565860607354425759
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 58.32%
Institutions 20.36%
Non-Institutions 21.31%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Grindwell Norton Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Grindwell Norton Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Grindwell Norton Ltd's performance infers:

Grindwell Norton Ltd earnings have grown by 12.3%, whereas share price has appreciated 22.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Grindwell Norton Ltd share prices over the last 10 years. Here is what we found out:

Grindwell Norton Ltd share price has appreciated 23.2% annually over the past ten years.

Grindwell Norton (GNO), a company listed on the Bombay and National Stock Exchanges, pioneered the manufacture of grinding wheels in India in 1941. In 1990, Saint-Gobain acquired Norton Company, USA, worldwide and thereby became a shareholder in GNO. In 1996, Saint-Gobain increased its equity stake, making GNO its first majority-owned subsidiary in India.

Presently, GNO’s businesses include: Abrasives, Ceramic

Grindwell Norton (GNO), a company listed on the Bombay and National Stock Exchanges, pioneered the manufacture of grinding wheels in India in 1941. In 1990, Saint-Gobain acquired Norton Company, USA, worldwide and thereby became a shareholder in GNO. In 1996, Saint-Gobain increased its equity stake, making GNO its first majority-owned subsidiary in India.

Presently, GNO’s businesses include: Abrasives, Ceramic Materials Businesses (Silicon Carbide and Performance Ceramics & Refractories), Performance Plastics and ADFORS. The Saint-Gobain Country Head office, INDEC (the captive India IT Development Centre for the Saint-Gobain Group globally) and CertainTeed are also part of GNO. GNO’s subsidiary, Saint-Gobain Ceramic Materials Bhutan Pvt. Ltd., manufactures Silicon Carbide. The Group currently holds 51.66% of the equity capital of GNO.

Business area of the company

Abrasives Business: GNO’s Abrasives Business, markets and manufactures a full range of Bonded Abrasives, Coated Abrasives (including Non-woven Abrasives), Thin Wheels and Superabrasives at its plants near Mumbai, Bangalore, Nagpur and Himachal Pradesh.

Ceramics Business: The Performance Ceramics & Refractories (PCR) business offers complete solutions with expertise in design, engineering and manufacturing refractory systems for high temperature, ballistic and wear applications. The HPR plants are located in Bangalore and Halol (Gujarat). The Silicon Carbide business manufactures Silicon Carbide crude and grains at Tirupati (Andhra Pradesh) and near Phuentsholing (Bhutan) and is a major supplier to all leading Refractory, Metallurgy and Abrasives manufacturers in India.

Other Businesses: GNO’s other businesses include: CertainTeed (subsidiary of Saint-Gobain) and INDEC (the captive India IT Development Centre for the Saint-Gobain Group globally).

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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